1. Global Business #9 July 2, 2011 Dept of Technology Management for Innovation (TMI), Graduate School of Engineering Professor Kazuyuki Motohashi 工学系研究科 技術経営戦略学専攻教授 元橋一之 http://www.mo.t.u-tokyo.ac.jp

2. Today’s Class What is marketing, why important? Marketing strategy planning steps 4P: Product, Price, Place and Promotion Marketing for emerging economies: China, India, BOP Introduction to the next class: Shiseido in China

3. Marketing and Sales MarketingSales New customers, potential customer needs Existing customers Forward looking (for new product, services) Existing products Market analysis for value creation Actions (Eigyo), and sales force management Involves whole process of marketing strategy Focus on “Promotion” in marketing 4P

4. How marketing fits in corporate strategy ?

5. Strategic Marketing Planning Market Analysis and Identifying Opportunities (SWOT analysis) Market Segmentation Identifying target market and product (service) positioning Marketing Mix (4P) and Execution

6. Ansoff’s Product and Market Growth Matrix Global Business Context: CAGE and AAA framework

7. Example of Market Segmentation

8. Target Segment Identification

9. Marketing’s 4P

10. Product

11. Price To what extent you can be a price setter, instead of price taker ?

12. Place (Channel)

13. Promotion (AIDMA) Changing to AISAS in Internet Era

14. Promotion tools (in detail)

15. Promotion in global business Some caveats Regulations over promotion activities: such as whether you can do “comparative advertising” Terminology in foreign language Brand creation (difference in customer’s perception) Importance of local ad agency Lack of product knowledge at local distributors

16. Marketing mix by product life cycle

17. Market Intelligence: China and India Concept of PPP （ Purchasing Power Parity)

18. Targeting? Profit=gross margin * sales volume (size of market and competition) Difference between durable and consumption goods, customer preference?

19. BOP(Bottom of the Pyramid) Over 20,000 US$ 1500 ～ 20,000 US$ 1500US$ and under 75 mil. -100 mil. 150 mil.-1,750 mil. 4,000 mil. （出典） The fortune at the bottom of the pyramid (C.K. Praharad)

20. BOP’s Business Chance （出典） The fortune at the bottom of the pyramid (C.K. Praharad)

21. Example: ICICI’s micro payment （出典） The fortune at the bottom of the pyramid (C.K. Praharad)

22. Next Class: Shiseido Case Is China is important for Shiseido? Evaluate based on Shiseido’s domestic and global operation statistics List merits and demerits of operating in China, as compared to operations in US and Europe Characterize Shiseido’s marketing strategy in China. Take Urara as an example, and discuss its targeted customer and marketing 4P. Do they have a consistent story? Compare Shiseido’s marketing in China with those of US and European mega players such as l’Oreal and P&G. It is better to keep such strategy, when Shiseido competes with them in Chinese market?